DESCRIPTION: This is a Phase II SBIR application to continue development and to commercialize a hand held confocal imaging system for in vivo observation of dermal and sub-dermal tissue. Phase I demonstrated feasibility of the technique. Infrared radiation provides enhanced penetration of tissue allowing diagnosis of conditions substantially beneath the surface of the skin. Phase II will optimize the operating wavelength and performance of the confocal head and will design and test a commercially feasible hand held instrument. The safety of the instrument will be studied via theoretical calculations, laboratory measurements, and animal experiments. Clinical trials will also be started. It is envisioned that several scans at different depths will provide a three-dimensional representation of dermatologic diseases such as basal cell carcinoma. This imaging is expected to aid in the delineation of tumor borders that would aid in more precise excision of diseased tissue.